Asked by Samantha Valadez on Jun 08, 2024
Verified
If the producers of canned green beans expect the price of canned green beans to increase in the future due to an increase in demand, they may put some of their current production into storage and supply less in the market today.
Current Production
The total amount of goods and services produced by an economy or firm at the present time.
Canned Green Beans
A preserved food product consisting of green beans that are processed and sealed in an airtight container, which can be stored for long periods.
- Comprehend how changes in expectations about future prices impact current demand and supply.
- Identify the influence of shifts in factors influencing supply, with the exception of price, on the configuration of the supply curve.
Verified Answer
SR
Sonya RobertsJun 13, 2024
Final Answer :
True
Explanation :
By storing part of their current production, producers anticipate selling it at a higher price in the future when the expected demand increase materializes, thus potentially increasing their profits. This action reduces the current supply in the market.
Learning Objectives
- Comprehend how changes in expectations about future prices impact current demand and supply.
- Identify the influence of shifts in factors influencing supply, with the exception of price, on the configuration of the supply curve.